The delivery company aims to reach breakeven at some point during H2 2023-H1 2024 on an adjusted EBITDA (earnings before interest taxes depreciation and amortization) basis.
By 2026, it hopes to reach a 4%+ adjusted EBITDA margin, “with further upside potential beyond 2026”, founder Will Shu said.
Adjusted EBITDA for 2021 was a loss of £131m, compared to £11m in 2020. Deliveroo said it had invested in increased marketing to drive awareness and new consumers, as well as scaling up its technology to support future growth.
The company grew its market share in the UK in 2021, with gross transaction value (GTV) up 71% year-on-year.
It also expanded its UK population coverage to 77% at the end of 2021 vs 53% at year-end 2020.
In the preliminary full year results, Deliveroo said it continued to scale its Plus service, growing UKI Plus subscribers four-fold in the year, as well Editions, adding more than 100 delivery-only kitchens globally.
The company raised £1.1bn net proceeds from its IPO in April 2021 and Series H fundraising in January 2021.
Revenues were up 57% to £1.8bn, driven by the increase in GTV.
GTV growth was 104% in H1 and 46% in H2 2021, showing the impact of the reopening of dine-in restaurants.
Deliveroo expects 2022 GTV growth to be in the range of 15-25%, with higher growth rate in H2 than in H1, due to a tougher comparison base in H1.
Will Shu, founder and CEO of Deliveroo, said: “Particularly encouraging to me was our performance in the UK and Ireland, where we continued to grow our market share and achieved profitability on an adjusted EBITDA* basis in a competitive environment - highlighting the strength of our consumer value proposition.
“We are excited about the opportunities ahead and have today laid out our plans on our longer-term path to profitability. This is a key focus for the Company this year and beyond. We aim to reach breakeven at some point during H2 2023-H1 2024 on an adjusted EBITDA* basis. And by 2026, we aim to reach a 4%+ adjusted EBITDA margin*, with further upside potential beyond 2026.
He added Deliveroo’s 2022 guidance reflects its caution in relation to pressures around inflation, the end of state support, and the war in Ukraine.
